The US Commodity Futures Trading Commission (CFTC) accused Fundsz of defrauding customers, as well as fictitious trading in cryptocurrencies and precious metals.

The CFTC filed a complaint in the U.S. District Court for the Middle District of Florida against Fundsz founders Rene Larralde, Juan Pablo Valcarce, Brian Early and Alisha Ann Kingrey accusing them of cryptocurrency fraud. .

The agency claims that from October 2020 to the present, the defendants promised investors that investments in Fundsz would bring them a return of more than 3% per week. And a one-time contribution to Fundsz of $2,500 can grow to $1 million within 48 months without additional deposits. The founders of Fundsz also claimed to be using a “secret” proprietary algorithm to trade cryptocurrencies and precious metals.

In addition, the defendants made false claims that they made timely payments to investors for seven years. Fundsz said that investors’ contributions were used to improve the environment, healthcare and education, as well as to provide humanitarian assistance, including during natural disasters. The founders of Fundsz managed to involve more than 14,000 people in the project. However, it turned out that Fundsz did not trade clients’ funds – they were presented with fictitious weekly earnings reports.

The agency is seeking damages to deceived investors, seizure of illegally obtained funds, imposition of administrative fines, and a permanent injunction against trading and registration so that the defendants do not continue to violate the Commodity Exchange Act. Judge Wendy Berger unilaterally signed an order to freeze the defendants’ assets and appoint an interim trustee. A hearing on the CFTC’s motion for a preliminary injunction against Fundsz is scheduled for August 23.

The agency recently accused a Tennessee couple of running a $6 million Blessings of God Thru Crypto scam.